The costs are broken down as follows:-
- The main fee is the purchase (or transfer) tax, which is based on the ‘assessed tax value’. Purchase tax is payable by the buyer at 7% on the first €15,000 and at 9% on the remainder. If the property is situated in an area covered by a public fire protection service (which includes most areas that are popular with foreign buyers) then the rates are increased to 9% on the first €15,000 and 11% on the remainder.
: New constructions with a building licence issued after January 2005 are subject to 18% VAT.
Land registry fees are between 0.3-0.5% of the ‘assessed tax value’ plus a small sum for stamp duties and certificates.
The fees for the notary are usually between 1-2% of the property’s assessed tax value. The notary is the official who draws up the final purchase contract and officiates the sale. A notary can also be used to draw up an extra contract appointing a power of attorney. This can be a useful document saving you time and money traveling to and from Greece to complete the sale. Legal fees for a lawyer are up to 1% of the ‘assessed tax value’. The actual fee depends on the value of the property. It is advisable for a lawyer to be involved with the purchase process.
It is optional to appoint a surveyor to inspect a building or plot of land. The fee varies depending upon the type of survey carried out and start from around 210€.
: A community tax at 3% of the property transfer tax is paid to the local municipality for general public services. This tax is payable at the same time as the purchase tax.
Usually the first steps of the purchase process are initiated with the signing of a “pre contract”. Your lawyer should be involved in this process and check that the titles/deeds are clear of debt and it is legal for the property to be sold. Following this a 10% deposit is payable to secure the property. Note : the funds should be deposited into a bank account. This is non refundable however if the seller pulls out he is liable to pay twice the amount of deposit to the buyer.
This can be done in several ways. However, you make sure that your Greek bank issues you with the official receipt known as the “pink slip”. This is so you can prove to the National Bank of Greece (for tax purposes) that the money originated from outside Greece.